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NSW turnaround brings profit for Straits

NSW turnaround brings profit for Straits

Photo by Bloomberg

29th August 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – ASX-listed copper miner Straits Resources’ turnaround strategy at its Tritton operations, in New South Wales, has paid off, with the miner reporting a net profit during the year ended June.

Straits this week noted that a net profit of A$13.5-million was recorded for 2014, compared with the net loss of A$23.9-million in the previous financial year.

“This is a very pleasing result built on record copper production at the Tritton operation and demonstrates that the turnaround strategy we implemented 18 months ago is delivering real results,” said Straits executive chairperson Andre Labuschagne.

The Tritton mine delivered 26 422 t of copper during the year under review, compared with the 23 338 t delivered in 2013.

Straits was expected to continue its focus on cost management in the year ahead, and the Tritton project was slated to produce some 27 000 t of copper in 2015.

“Tritton achieved an operating profit of A$13.5-million and our headline net profits of A$57.4-million is a significant improvement on last year’s headline results,” added Labuschagne.

He pointed out that the company’s Indonesian subsidiary had now been de-recognised from the group’s accounts, realising a profit of A$103.9-million and enabling Straits’ balance sheet to reflect a positive net asset position.

The Indonesian subsidiary, which holds the Mt Muro operations, filed for bankruptcy earlier this year. Mt Muro has been closed since August last year after the subsidiary failed to progress the mine to a cash positive status.

Labuschagne said that the company was continuing its work to exit the Indonesian asset.

Edited by Creamer Media Reporter

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